CandyMan Manufacturing uses a process-cost system and computes cost using the weighted average costing method. During the current period, the beginning Work-in-Process Inventory Inventory cost was $15,000. Manufacturing cost added was $65,000. Suppose CandyMan's ending Work-in-Process Inventory Inventory was valued at $22,000. What must have been the cost of goods transferred?
A) $43,000
B) $58,000
C) $65,000
D) $80,000

Question

Quizplus · Accepted Answer

To find the cost of goods transferred, we need to calculate the total cost of work in process for the period, and then subtract the ending Work-in-Process Inventory cost.

Total Cost of Work in Process = Beginning Work-in-Process Inventory + Manufacturing Costs Added

Total Cost of Work in Process = $15,000 + $65,000 = $80,000

Cost of Goods Transferred = Total Cost of Work in Process - Ending Work-in-Process Inventory Cost

Cost of Goods Transferred = $80,000 - $22,000 = $58,000

Therefore, the answer is B ($58,000).

CandyMan Manufacturing Uses a Process-Cost System and Computes Cost Using